Pearson chief John Fallon denies the FT is for sale as sales increase 4%

Pearson chief executive John Fallon has denied that the Financial Times is for sale, as the company's annual results show the FT Group reported sales of £443m in 2012, an increase of 3.7% year on year.

Financial Times: not for sale says Pearson chief executive
Financial Times: not for sale says Pearson chief executive

Following publication of Pearson's 2012 results this morning, Fallon said the FT was not for sale and that Pearson, which is now largely an education business, had not initiated, encouraged or participated in any sort of sale-related process.

There has been much speculation that the FT would be sold following the departure last year of former Pearson chief executive Marjorie Scardino, who had previously said the paper would be sold "over her dead body".

Adjusted operating profit at the FT Group – which includes the financial intelligence division Mergermarket and Pearson’s 50% ownership of The Economist – was £49m in 2012, a decline of 35.5% year on year.

It is understood that the decline in operating profit is largely to do with the sale of FTSE in December 2011, and costs related to the FT's investment in digital and restructuring.

According to Pearson's results, advertising now accounts for 39% of all FT Group revenues, down from 52% in 2008. The company said advertising was "generally weak and volatile" with poor visibility.

However, Pearson said the FT grew its market share in 2012 and experienced ad growth in mobile, luxury and business education sectors.

Digital services and revenues now account for 50% of all FT Group revenues, up from 31% in 2008, while 61% of all revenues were from content, up from 48% in 2008.

Pearson said the FT’s digital subscriptions increased by 18% to almost 316,000. Mobile devices now account for 30% of FT.com traffic and 15% of new subscriptions.

The FT's total paid circulation was more than 602,000 across print and online, and digital subscriptions exceeded print across a full year for the first time, confirming the trend first set in Pearson's half yearly results in July 2012.

John Fallon said: "I've been absolutely clear. I've said that the FT is a valued and valuable part of Pearson. I have said the business is not for sale. Nor have we initiated, conducted, encouraged in any shape or form any process whatsoever. Nor have I had any conversations with anybody about a sale of the FT."

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Omnicom dispute to drive down Channel 5 prices in H2

Omnicom dispute to drive down Channel 5 prices in H2

Omnicom's trading dispute with Channel 5 is expected to drive down the broadcaster's prices by an estimated six per cent year on year, according to an internal Channel 5 document seen by Campaign.

Share
Aga targets city homes with cooker campaign

Aga targets city homes with cooker campaign

Aga, the British cooker brand indelibly linked with the upper-middle classes and their country homes, has released a campaign for its city oven.

Share
David Abraham MacTaggart lecture: full text

David Abraham MacTaggart lecture: full text

Read the full text of David Abraham's speech, called 'After The Gold Rush: Sustaining creative risk in UK television for the next generation', given at the Edinburgh International Television Festival.

Share

Get news by email